I normally steer clear of politics on this blog, but I couldn’t not share this excellent article in The New Yorker about the Greece’s debt burden. It’s rather brief, but makes a few points that I think are very important:
- Greece’s debt dynamics are unsustainable.
- Dragging out the negotiations hasn’t helped this, but to suggest that Syriza is to blame for Greece’s debt load being unsustainable is silly.
- The bailout was more about protecting German banks, but especially the French banks, from debt write-offs than helping the Greek people.
- European leaders were concerned that writing off some of Greece’s debts would set a precedent for other heavily indebted countries. This is true, but it’s probably too late now.
- Germany has benefited from debt relief after World War II, so it might be time to return the favor.
This is the kind of harsh realities I would like to hear from my government and other European leaders.